TORONTO, ONTARIO – November 8, 2016 – Anaconda Mining Inc. (“Anaconda” or the “Company”) – (TSX:ANX) is pleased to provide an update on second quarter operations that will conclude on November 30, 2016. As previously stated (see press release dated October 18, 2016), the Company reported that the average tonnes processed per operating day at the Pine Cove Mill was 1,220 in August and 1,340 in September. Anaconda continued to maintain average throughput in October at 1,340 tonnes per operating day. In addition, the average grade during September and October was 1.34 grams per tonne (“g/t”), approximately 15% higher than the grade reported during the first quarter of fiscal 2017 and in line with previous guidance. Consequently, the Company expects gold sales volume to exceed first quarter results and be between 3,800 and 4,000 ounces for the second quarter ended November 30, 2016.

Anaconda has also made adjustments to its mining operations. In mid-October, the Company completed rock placement for Phase 1 of Tailings Storage Facility II and reduced loading and hauling activities to five days per week, 10 hours per day from seven days per week, 12 hours per day. Anaconda expects the new schedule to remain in place for the remainder of the fiscal year. Furthermore, the average strip ratio for September and October was 5.5 : 1, waste to ore, as compared to 8.2 : 1 in the first quarter.

Fiscal 2017 Guidance:
In its press release dated August 26, 2016, Anaconda reported that it expected to sell over 16,000 ounces of gold in fiscal 2017 and generate over $24 million of revenue using a gold price of $1,500 per ounce. Anaconda is refining its guidance in light of several factors, including first quarter results, current gold price, throughput rates, strip ratio and grade. It has begun to see improvements in the second quarter with respect to increased grade and throughput as well as a decreased strip ratio. In the second half of the year, grade is expected to continue to be about 15% to 20% above first quarter grade of 1.17 g/t while strip ratio is planned to be between 3 : 1 and 4 : 1, waste to ore. Because of the upcoming winter season, the Company is forecasting throughput to be about 1,300 tonnes per operating day for the second half of fiscal 2017, slightly lower than the recent run rate. Overall, Anaconda is expecting better operating and financial results in the second half of the year as compared to the first half.

During the second half of fiscal 2017, unit cash costs are expected to return to their historical levels ($1,000 to $1,075 per ounce) resulting in cash cost per ounce for the year being between $1,100 and $1,175. All in sustaining cash cost (“AISC”) per ounce is also expected to reduce during the second half of fiscal 2017 as Phase 1 of Tailings Storage Facility II will be complete and the Company’s 17,000-metre drill program (the “2016 Drill Campaign”) will be nearly finished by the end of the second quarter. Anaconda is forecasting full year AISC per ounce to be between $1,675 and $1,750, primarily because of investments made in tailings storage and exploration. Thus far, the 2016 Drill Campaign has generated positive results and demonstrated may demonstrate the potential to expand resources (See press releases dated September 20, 2016, October 12, 2016 and October 27, 2016).

The following table summarizes the expectations of certain key operating and financial metrics for the second half of fiscal 2017 and the entire fiscal 2017. All dollar amounts are in Canadian dollars unless otherwise noted.

Q3 & Q4 FY ’17

FY ‘17

Sales volume (oz.)

8,500 – 8,900

15,500 – 16,000

Unit economics:

Rev / oz.

$1,625 – $1,675

$1,625 – $1,675

Cash cost / oz.

$1,000 – $1,075

$1,100 – $1,175

AISC / oz.

$1,350 – $1,425

$1,675 – $1,750

NOTE: Cash cost per ounce sold is cost of sales from the period before depreciation divided by the number of ounces of gold sold in the period. AISC per ounce includes total cash costs plus the sum of corporate administrative expenses, sustaining capital expenditures, the addition of production stripping assets and certain exploration and evaluation expenses, all divided by the number of ounces sold in the period. This measure seeks to reflect the full cost to sustain the current level of gold production from the Company’s operations. Certain other cash expenditures, including income tax payments and financing costs are not included.

President and CEO, Dustin Angelo, stated, “The Point Rousse Project has performed extremely well since a challenging first quarter. We’ve gotten through a difficult period in our mine plan from a grade and strip ratio perspective and expect better performance from our mining activities for the remainder of the fiscal year. We’ve also gotten a boost from higher throughput where we expect to maintain at least 1,300 tonnes per operating day, on average, for the rest of fiscal 2017. Because of our slow start, we expect to produce and sell slightly less ounces this year than last, but we plan to finish strong. The revised outlook for the second half of fiscal 2017 highlights the projected increase in production and significant reduction of all-in sustaining cash costs. Also, our newly announced aggregates project will begin generating cash flow, which will enhance financial results.”

ABOUT ANACONDA
Anaconda Mining is a growth-oriented, gold mining and exploration company with a producing project called the Point Rousse Project and an exploration/development project called the Viking Project in Newfoundland.

The Point Rousse Project is approximately 6,300 hectares of property on the Ming’s Bight Peninsula located in the Baie Verte Mining District in Newfoundland, Canada. Since 2012, Anaconda has increased its property control by ten-fold on the peninsula and gold production to approximately 16,000 ounces per year. In an effort to expand production, it is currently exploring three primary, prospective gold trends, which have approximately 20 kilometres of cumulative strike length and include five deposits and numerous prospects and showings, all within 8 kilometres of the Pine Cove Mill.

Anaconda also controls the Viking Project, which has approximately 6,225 hectares of property in White Bay, Newfoundland, approximately 100 kilometres by water (180 kilometres via road) from the Pine Cove Mill. The project contains the Thor Deposit and other gold prospects and showings. The Company’s plan is to discover and develop more resources within these project areas and substantially increase annual production at the Pine Cove Mill from its current rate of approximately 16,000 ounces.

As the only pure play gold producer in Atlantic Canada, Anaconda Mining is turning the rock we live on into a growing and profitable resource. With a young and motivated workforce, innovative technology and the support of local suppliers, Anaconda is investing in the people of Newfoundland & Labrador and giving back to the communities in which we operate – building a better future for all our stakeholders, from the ground up.

FORWARD-LOOKING STATEMENTSThis document contains or refers to forward-looking information. Such forward-looking information includes, among other things, statements regarding targets, estimates and/or assumptions in respect of future production, mine development costs, unit costs, capital costs, timing of commencement of operations and future economic, market and other conditions, and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to: the final approval of the private placement by the Toronto Stock Exchange; the grade and recovery of ore which is mined varying from estimates; capital and operating costs varying significantly from estimates; inflation; changes in exchange rates; fluctuations in commodity prices; delays in the development of the any project caused by unavailability of equipment, labour or supplies, climatic conditions or otherwise; termination or revision of any debt financing; failure to raise additional funds required to finance the completion of a project; and other factors. Additionally, forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as “plans,” “may,” “estimates,” “expects,” “indicates,” “targeting,” “potential” and similar expressions. These forward-looking statements, including statements regarding Anaconda’s beliefs in the potential mineralization, are based on current expectations and entail various risks and uncertainties. Forward-looking statements are subject to significant risks and uncertainties and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and we assume no responsibility to update them or revise them to reflect new events or circumstances, except as required by law.